SEC Official Rewarded Despite Missing Madoff Scheme

Law360, New York (August 4, 2011, 7:42 PM EDT) -- A U.S. Securities and Exchange Commission employee who worked on investigations into Bernard L. Madoff Investment Securities LLC and did not detect the fraudster's massive Ponzi scheme was given a cash award in 2010 for later work on the case, according to a report released Tuesday.

The unnamed employee, who was a "key participant" in the 2005 examination and 2006 investigation of Madoff, received a $1,200 cash award in April 2010 for the previous year's work on the Madoff case, according to SEC Inspector General H....